“We Have Excess Electricity”—Time for More Crypto Mining

• Belarus is leveraging excess nuclear energy to expand crypto mining and attract international miners.
• Favorable tax policies and growing mining investments could strengthen Belarus’s role in the global crypto ecosystem.

Belarus is positioning itself as a key hub for cryptocurrency mining, leveraging its surplus electricity to attract local and international miners. In 2021, CNF reported that President Alexander Lukashenko encouraged crypto mining, emphasizing that Belarus has ample electricity to support the industry.

On March 4, 2025, Lukashenko directed newly appointed Energy Minister Alexei Kushnarenko to explore crypto mining sector development, citing the global shift toward digital currencies as an economic opportunity. Lukashenko stated:

We have an excess of electricity. Let them make this cryptocurrency and so on.

Harnessing Surplus Energy

Belarus’s energy landscape has transformed with the commissioning of the second unit of the Belarusian Nuclear Power Plant in May 2023. This plant now supplies approximately 40% of the country’s electricity needs, making Belarus a global leader in nuclear energy utilization.

As electricity consumption in 2023 surpassed 41 billion kWh, discussions emerged about building additional power units to meet future domestic demand, projected to reach 47 billion kWh by 2030. Lukashenko reaffirmed his support for mining, stating:

Look at this mining thing. More and more people are approaching me. If it’s profitable for us, let’s do it. We have a surplus of electricity. Let them do this cryptocurrency and so on.

Incentives and Regulatory Landscape

To attract crypto enterprises, Belarus has introduced favorable policies, including a decree extending tax exemptions for crypto-related activities until 2025. This means that entities involved in mining and token creation are exempt from VAT, income tax, and personal income tax.

Belarus’s competitive electricity rates and crypto-friendly regulations have made it a prime destination for global mining operations.

Deputy Minister of Energy Denis Moroz reported a significant influx of mining investors, with existing operations consuming approximately 120 MW of electricity.

Implications for the Crypto Market

By channeling its energy surplus into cryptocurrency mining like Bitcoin mining, Belarus is contributing to global mining capacity and decentralization, which could strengthen the overall crypto ecosystem.

Belarus’s proactive approach to integrating cryptocurrency mining into its energy strategy underscores the nation’s commitment to embracing technological advancements and diversifying its economic landscape.

This development may influence the dynamics of major cryptocurrencies like Bitcoin, potentially affecting their supply metrics and market valuations.

As of March 5, 2025, Bitcoin (BTC) is trading at $87,604, reflecting a 5.01% increase in the past day, despite a 1.07% decrease over the past week.